MotorCycle Holdings Limited
MotorCycle Holdings Limited Fundamental Analysis
MotorCycle Holdings Limited (MTO.AX) shows moderate financial fundamentals with a PE ratio of 8.52, profit margin of 2.75%, and ROE of 9.47%. The company generates $0.7B in annual revenue with strong year-over-year growth of 11.69%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MTO.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakMTO.AX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMTO.AX trades at attractive valuation levels.
Growth Score
ExcellentMTO.AX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentMTO.AX maintains a strong and stable balance sheet.
Profitability Score
WeakMTO.AX struggles to sustain strong margins.
Key Financial Metrics
Is MTO.AX Expensive or Cheap?
P/E Ratio
MTO.AX trades at 8.52 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MTO.AX's PEG of 1.06 indicates fair valuation.
Price to Book
The market values MotorCycle Holdings Limited at 0.80 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.11 times EBITDA. This is generally considered low.
How Well Does MTO.AX Make Money?
Net Profit Margin
For every $100 in sales, MotorCycle Holdings Limited keeps $2.75 as profit after all expenses.
Operating Margin
Core operations generate 7.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.47 in profit for every $100 of shareholder equity.
ROA
MotorCycle Holdings Limited generates $4.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MotorCycle Holdings Limited generates limited operating cash flow of $52.64M, signaling weaker underlying cash strength.
Free Cash Flow
MotorCycle Holdings Limited produces free cash flow of $49.34M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.67 in free cash annually.
FCF Yield
MTO.AX converts 29.30% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.98
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How MTO.AX Stacks Against Its Sector Peers
| Metric | MTO.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.52 | 24.23 | Better (Cheaper) |
| ROE | 9.47% | 1121.00% | Weak |
| Net Margin | 2.75% | -640.00% (disorted) | Weak |
| Debt/Equity | 0.98 | 0.82 | Neutral |
| Current Ratio | 1.56 | 2.62 | Neutral |
| ROA | 4.42% | -8056.00% (disorted) | Weak |
MTO.AX outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MotorCycle Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
50.33%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
265.09%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
22.34%
Industry Style: Cyclical, Growth, Discretionary
High Growth